I would still like to have the comfort of knowing that I have homeowner's title insurance even if I never use it. The policy premiums that I am seeing on HUD 1 forms usually range from $600 to $700 for mortgagee's policies. It is true that in most cases it will never be used, but it is nice to know that it is there for unforeseen circumstances. The premium is a one time expense, and is minimal by comparison to the market value of the property it protects.

In so far as the purchase  and refi of property is concerned, you are not going to get a mortgage without a mortgagee's policy. If you are refinancing property, and have previously insured it, the title insurance company is supposed to give you a pretty good discount on the title insurance premium if you can produce evidence ( policy or dec page) of the prior insurance coverage. Most people do not know enough to ask for the discount, or can not produce evidence of the prior coverage.